Arun Jaitley bats for rate cut, says he expects what everyone expects
With inflation apparently under control and growth in need of a boost, the government on Thursday once again nudged the Reserve Bank of India (RBI) to cut interest rates further.business Updated: May 14, 2015 23:08 IST
With inflation apparently under control and growth in need of a boost, the government on Thursday once again nudged the Reserve Bank of India (RBI) to cut interest rates further.
“I expect what every Indian expects,” finance minister Arun Jaitley told reporters on Thursday when asked about possible future rate cuts. He declined to elaborate, but his meaning was clear: the government would like all the help it can get to prompt industries to invest, developers to build and consumers to borrow.
The economy was on a recovery path with macro-economic indicators such as inflation and fiscal and current account deficits under control, Jaitley said a day after the conclusion of the budget session of Parliament. “The net effect of all the steps taken by the government over the last one year will start rolling out,” he said.
He added that foreign direct investment into India had risen by 40% in 2014-15 compared to the previous year.
The finance minister also said that the government would have to work overtime to ensure that the goods and services tax (GST) was rolled out by April 1, 2016. The bill was referred to the select committee for ratification after it failed to garner support in the Rajya Sabha following its passage in the Lok Sabha.
Jaitley also said that the government was looking at an outright sale of certain public sector undertakings through a strategic partner. “There is no difficulty in even strategic sales. I think the ministry of tourism themselves may take initiatives,” he said.
On the issue of black money, he added that the government would notify the compliance window to allow those holding undeclared assets abroad to come clean and pay 30% tax and 30% penalty.